05 Dec 2022

Members of Parliament have decried lack of citizen participation in the economy.

This came to light on Friday during the debates on a motion tabled by Kanye North MP Mr Thapelo Letsholo pleading with legislators for the formulation of a law prohibiting businesses with the same beneficial owners from obtaining trading licenses within the same value chain in order to achieve a more inclusive economy where Batswana truly shared prosperity and participated in wealth creation.

Selebi Phikwe West MP Mr Dithapelo Koorapetse supported the motion presented by Mr Letsholo in that it maintained the ideals of citizen inclusion.

He said the economy of Botswana was undiversified as 80 per cent of the export base was attributed to the mining sector especially diamonds and noted how saddening it was that the economy could not create employment and end poverty.

Mr Koorapetse who is also the Leader of Opposition said business and value chain supply belonged to the same beneficial owners and gave the example of the automobile industry which he said belonged to a particular family from purchasing, servicing and parts sales.

He said besides side-lining locals, the practice was not fair and high risk to the economy. He said other countries identified that risk and did not allow control of at least 20 per cent of the market share belonging to an individual company.

He said if the company liquidated this may cause a major problem.

Mr Koorapetse said manipulating public policy to suit an individual led to state capture.

He said no Motswana benefitted from the poultry industry as the whole value chain was controlled by the same individuals.

MP for Okavango Mr Kenny Kapinga said the motion should be able to create equal opportunities for Batswana. 

He said in most instances, laws and institutions were set up to prohibit the monopoly but were dysfunctional. 

He said the competition authority was mandated to prohibit such but looked toothless.

Mr Kapinga said until government identified that the current arrangement inherently encouraged the powerful over the poor it would remain the same.

He said local businesses were adversely affected by the arrival of chain stores and pleaded with government to change its ideology to the way Batswana had to conduct and participate in the economy.

Palapye MP Mr Onneetse Ramogapi said vertical integration was killing small retailers belonging to Batswana.

He was worried that the business monopoly was controlled by a small portion and that major activities in the supply chains belonged to the same people. He urged government to accept the motion and expedite its implementation.

Kgalagadi North MP Ms Talitha Monnakgotla said the motion advocated for economic inclusion for Batswana.

 She said youth and women were hard hit by the effect of unemployment adding that government would continue supporting and encouraging any programme aimed at empowering the two groups.

Ms Monnakgotla who is also assistant minister of local government and rural development proposed the setting up of many programmes and policies supporting women empowerment and expressed worry that the two groups were not participating in the retail and distribution sector in Botswana.

She urged competition and consumer authority to look into the issue of monopoly and its impact. BOPA